The biologics outsourcing global market is expected to grow at double
digit CAGR to reach $87.6 billion by 2027.

Biologics are therapeutic entities composed of sugars, proteins, or
nucleic acids made from natural sources such as human, animal or micro
organisms. Biologics can also include live attenuated microorganisms
(vaccines), allergenic extracts (allergy shots), human cells and tissues
(transplantation), cell therapies and gene therapies. Like small
molecule drugs, these drugs are intended for treatment of diseases and
medical conditions.

However, Biologics bring into picture higher range of specificity in
treating a disease condition as the biologic entities like monoclonal
antibodies and recombinant proteins target specific areas in the
molecular mechanism of disease action.

Although biologics are much costlier than small molecule drugs, these
classes of drugs prove to be highly beneficial for the patient and also
bring about 40% higher profits to the manufacturers when compared to
small molecule drug treatments. Due to the increasing demand for
biologics drugs and increased regulatory approvals for these drugs,
there is huge demand for biologics manufacture and testing at various
levels of clinical studies as well as commercial supply.

The Large Biopharma companies are coming up with strategies to cut down
on their operational costs and concentrate more on their core
competencies by outsourcing this piece of work to contract research
organizations (CROs), contract development and manufacturing
organizations (CDMOs) and contract manufacturing organizations (CMOs).

These organizations bridge the gap between demand and supply and ensure
the drug discovery process gets much faster and convenient thus bringing
life saving drugs to the market to reach the needy patients.

In 2017, 7 out of 10 blockbuster drugs were biologics outnumbering small
molecule drugs. Some of the top selling biologics in 2017 includes
Humira ($18.4 billion), Rituxan ($9.2 billion), Enbrel ($7.9 billion),
and Herceptin ($7.4 billion). The growth of biologics market indirectly
indicates the huge demand for services spanning all stages of biologics
development starting preclinical stage to commercial manufacturing.